DoD's $38.5M DISN Engineering Support contract awarded to BY LIGHT PROFESSIONAL IT SERVICES LLC shows fair value

Contract Overview

Contract Amount: $38,484,969 ($38.5M)

Contractor: BY Light Professional IT Services LLC

Awarding Agency: Department of Defense

Start Date: 2013-09-30

End Date: 2019-04-29

Contract Duration: 2,037 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CT::IGF DISN ENGINEERING SUPPORT LABOR TASK 2

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $38.5 million to BY LIGHT PROFESSIONAL IT SERVICES LLC for work described as: IGF::CT::IGF DISN ENGINEERING SUPPORT LABOR TASK 2 Key points: 1. The contract demonstrates a reasonable cost for the services rendered, aligning with industry benchmarks. 2. Competition was robust, indicating a healthy market for these specialized IT services. 3. Performance risks appear manageable given the contract's duration and the contractor's experience. 4. The services provided are critical to the Defense Information Systems Agency's operational capabilities. 5. This contract falls within the broader IT services sector, supporting defense infrastructure. 6. The fixed-fee structure provides cost certainty for the government.

Value Assessment

Rating: good

The total contract value of approximately $38.5 million over its life appears reasonable when benchmarked against similar IT support contracts within the Department of Defense. The cost-plus-fixed-fee (CPFF) pricing structure, while allowing for flexibility, was managed with a fixed fee component that limits overall cost escalation. Comparisons with other contracts for computer systems design services suggest that the pricing for BY LIGHT PROFESSIONAL IT SERVICES LLC is competitive, reflecting the specialized nature of DISN engineering support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded, potentially limiting the bidder pool. The specific reasons for exclusion are not detailed but could relate to specialized capabilities or prior performance requirements. The presence of 6 bidders suggests a moderate level of competition, which is generally sufficient to drive competitive pricing, though a broader pool might have yielded even more aggressive bids.

Taxpayer Impact: The limited competition, while still resulting in multiple bids, means taxpayers may not have benefited from the absolute lowest possible price that could have been achieved with a truly unrestricted full and open competition.

Public Impact

The primary beneficiaries are the Department of Defense and its components, which receive essential engineering and IT support for the Defense Information Network (DISN). Services delivered include computer systems design, integration, and ongoing support critical for maintaining secure and reliable communication networks. The geographic impact is national, supporting DoD operations across various locations. The contract supports a workforce of skilled IT professionals and engineers, contributing to the specialized federal IT labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not closely monitored.
Dependence on a single contractor for critical DISN engineering support could pose a risk if performance falters.
The 'Exclusion of Sources' clause warrants further scrutiny to ensure it did not unduly restrict competition.

Positive Signals

The contract was awarded after a competitive process, indicating a selection based on merit.
The fixed-fee component provides a degree of cost control for the government.
The contractor, BY LIGHT PROFESSIONAL IT SERVICES LLC, has a track record in providing IT services to the federal government.
The contract duration of nearly 6 years suggests a stable, long-term need for these services.

Sector Analysis

This contract operates within the Information Technology (IT) services sector, specifically focusing on computer systems design and integration. The market for such services is large and competitive, with significant government spending allocated to IT infrastructure and support. This contract represents a portion of the Defense Information Systems Agency's (DISA) broader IT spending, aimed at maintaining and enhancing critical defense communication networks. Comparable spending benchmarks in this area often involve multi-year contracts for system design, implementation, and maintenance, with values ranging from tens to hundreds of millions of dollars.

Small Business Impact

This contract does not appear to have a specific small business set-aside component, as indicated by 'sb': false. The prime contractor, BY LIGHT PROFESSIONAL IT SERVICES LLC, is likely a mid-to-large-sized business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific prime contract is likely minimal, though the prime contractor's own supply chain practices would determine any indirect effects.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Information Systems Agency (DISA). As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are expected to ensure costs are reasonable and the fixed fee is earned. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Defense Information Network (DISN) Operations
IT Systems Engineering Support
Computer Systems Design Services
Federal IT Infrastructure Contracts
Department of Defense IT Procurement

Risk Flags

Limited competition due to source exclusion.
Potential for cost overruns in CPFF contracts.
Contract duration may exceed actual need if requirements change.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.5 million to BY LIGHT PROFESSIONAL IT SERVICES LLC. IGF::CT::IGF DISN ENGINEERING SUPPORT LABOR TASK 2

Who is the contractor on this award?

The obligated recipient is BY LIGHT PROFESSIONAL IT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $38.5 million.

What is the period of performance?

Start: 2013-09-30. End: 2019-04-29.

What is the contractor's performance history with the federal government, particularly on similar IT support contracts?

BY LIGHT PROFESSIONAL IT SERVICES LLC has a history of performing IT support and services for the federal government. While specific performance metrics for this DISN Engineering Support contract are not detailed in the provided data, the award itself suggests a positive assessment of their capabilities during the procurement process. Federal procurement databases often contain past performance evaluations, which would be crucial for a comprehensive review. Generally, contractors with a strong track record in areas like network engineering, systems integration, and cybersecurity are favored for complex defense IT contracts. Further analysis would involve examining contract close-out reports and any available CPARS (Contractor Performance Assessment Reporting System) data for this and related contracts held by BY LIGHT PROFESSIONAL IT SERVICES LLC.

How does the total contract value of $38.5 million compare to similar IT support contracts awarded by DISA or the DoD?

The $38.5 million total contract value for DISN Engineering Support, spanning nearly six years (2013-2019), positions it as a significant, mid-to-large-sized contract within the IT services domain for the Department of Defense. When compared to other DISA or DoD contracts for computer systems design services (NAICS 541512) or broader IT support, this value appears consistent with contracts requiring specialized engineering expertise for complex networks like DISN. Many similar multi-year contracts for network operations, system integration, and cybersecurity support can range from tens to hundreds of millions of dollars. The value reflects the sustained need for skilled personnel and technical services to maintain critical defense infrastructure over an extended period.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk with a CPFF contract structure, like the one used here, is the potential for cost overruns if the government does not maintain rigorous oversight. While the fixed fee provides a ceiling on the contractor's profit, the 'cost plus' portion means the government reimburses the contractor's allowable costs. If the contractor is inefficient or if unforeseen technical challenges arise, the total cost to the government could exceed initial estimates. For DISN engineering support, risks include scope creep, unexpected technical complexities in network upgrades, or difficulties in resource management. Effective risk mitigation relies on detailed cost tracking, regular performance reviews, and clear definition of work requirements to prevent scope expansion without corresponding adjustments.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type signifies that the solicitation was initially intended for full and open competition, but specific sources were subsequently excluded from consideration. This exclusion typically occurs when only a limited number of responsible sources possess the required capabilities, qualifications, or proprietary information necessary for the acquisition. While it implies a degree of competition (as evidenced by 6 bidders), it is less competitive than unrestricted full and open competition. The rationale for exclusion must be justified, often to ensure best value or to leverage unique technologies. For taxpayers, this means the potential for a narrower range of pricing and solutions compared to a scenario where all potential bidders could participate.

How has federal spending on IT support services like this evolved over the period of this contract (2013-2019)?

Federal spending on IT support services, including system design and engineering, generally saw a steady increase from 2013 to 2019, driven by modernization efforts, cybersecurity imperatives, and the expansion of digital services across agencies. During this period, the Department of Defense remained a major spender, focusing on upgrading legacy systems, enhancing network security, and adopting cloud technologies. Contracts like the DISN Engineering Support award reflect this trend, emphasizing the ongoing need for specialized expertise to manage and maintain complex defense IT infrastructure. The overall federal IT budget grew significantly, with a substantial portion allocated to operations and maintenance, as well as new system development and integration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC102810R2001

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3101 WILSON BLVD STE 850, ARLINGTON, VA, 22201

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $38,484,969

Exercised Options: $38,484,969

Current Obligation: $38,484,969

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102813D0011

IDV Type: IDC

Timeline